	***********************************************************************************
	* Inter-regional Inequality and the Dynamics of Government Spending 
	* Online Appendix -- Section 6. Alternative Measures of Inter-regional Inequality
	***********************************************************************************
	clear all
	set more off 
	set mem 600m
	cd "YOUR_DIRECTORY_PATH_HERE\supplements (online appendix)\appendix i"
	use "onlineappendix.dta"   

	*************************************
	** Rescaling / Modifying Variables                              
	*************************************
	sort id year 
	sum ideal_pt_V1, meanonly
	gen jacoby_modified2 = ideal_pt_V1 - `r(mean)'
	replace adgini = adgini*100
	replace jacoby_modified2 = jacoby_modified2*100
	replace ineq_spns = ineq_spns*100
	gen log_pop = log(pop)	
	gen log_rgdpch = log(rgdpch)
	gen pop14_65 = popunder14 + popover65

	**************************************
	* Generate five-year moving averages 
	**************************************
	foreach x of varlist adgini rpop_s1_rgdppc ///
	ineq_spns rgdppc_density ///
    log_pop pop14_65 a log_rgdpch gov_left2 {
	gen ma`x' = (l1.`x' + l2.`x' + l3.`x' + l4.`x'+ l5.`x')/5
	}

	***********************
	** Renaming Variables
	***********************
    rename govexp_central_cofog2 central_govtsp
	rename jacoby_modified2 policy_priority
    rename maadgini rdgini
	rename marpop_s1_rgdppc mm_ratio_popprowt
	rename malog_pop population_logged
	rename mapop14_65 dependent_population 
	rename maa economic_globalization
	rename malog_rgdpch ppp_gdppc_logged
	rename magov_left2 leftistgovt
	rename Parl parliamentary
	rename Unit2 nonfed_nonbicam
	rename maineq_spns ineq_spns2
	rename margdppc_density mm_ratio_popdenwt
	
	global baseline l.population_logged l.d.population_logged l.dependent_population l.d.dependent_population l.economic_globalization l.d.economic_globalization l.ppp_gdppc_logged l.d.ppp_gdppc_logged l.leftistgovt
	tsset id year
	
	*****************************************************************************
	** Appendix I. Robust to Alternative Measures of Inter-regional Inequality
	*****************************************************************************
	* Model [1]
	xi:xtpcse d.central_govtsp l.central_govtsp l.ineq_spns2 $baseline l.PR l.parliamentary l.nonfed_nonbicam i.id if year>=1991 & year<=2011, noconst pairwise corr(psar1)
	
	* Model [2]
	xi:xtpcse d.central_govtsp l.central_govtsp l.mm_ratio_popdenwt $baseline l.PR l.parliamentary l.nonfed_nonbicam i.id if year>=1991 & year<=2011, noconst pairwise corr(psar1)
	
	* Model [3]
	xi:xtpcse d.policy_priority l.policy_priority l.ineq_spns2 $baseline l.PR l.parliamentary l.nonfed_nonbicam i.id if year>=1991 & year<=2011, noconst pairwise corr(psar1)
	
	* Model [4]
	xi:xtpcse d.policy_priority l.policy_priority l.mm_ratio_popdenwt $baseline l.PR l.parliamentary l.nonfed_nonbicam i.id if year>=1991 & year<=2011, noconst pairwise corr(psar1)

		